The fund can also be converted when it loses money. After holding any open-end fund issued by a company, investors can directly convert their fund shares into those of other open-end funds managed by the company. No matter whether the fund is a loss or a profit, it can be converted as long as it meets the conversion requirements of the fund company.

Whether the fund is converted after a loss can depend on the situation: under normal circumstances, it is not cost-effective for the fund to convert when it is losing money. If the decline of the fund is affected by market fluctuation, the performance of the fund itself is still outstanding, the investment decision of the fund manager is reasonable, and the future expectation of the fund is good, then investors are not suitable for switching to the fund. Instead, when the net value of the fund decreases, they should buy at a low price to increase the share of the fund and reduce the total cost of the fund, waiting for the subsequent appreciation of the fund. If the fund is in a state of falling losses for a long time due to non-market overall factors, and the expected trend in the future is not good, then investors should switch the fund to other funds with better performance and stop losses in time.

Advantages of fund conversion:

1, reducing the investment cost. Redemption of the conversion fund through the normal subscription of the fund requires a 2% handling fee. Direct fund conversion only needs to pay the difference between the redemption fee of the transferred fund and the subscription fee of the transferred fund, which saves the handling fee and greatly reduces the investment cost of investors.

2. Shorten the investment time. Through the normal subscription and redemption of the fund, it takes about 5-9 times to convert the fund. And direct fund conversion, some funds and investors switch on the same day, the share of newly bought funds can be determined on the same day, which can shorten the time cost of 2-4 days, so fund conversion saves more time.

3. Quickly adjust asset allocation. When investors have problems in income or holding funds and need to adjust asset allocation, they can directly convert funds and quickly adjust positions. It can also get rid of loss-making funds faster and turn them into funds with good follow-up trend and stronger profitability.

4. Reduce investment risks. When the securities market fluctuates greatly and the funds invested by investors start to lose money, investors can directly change the share and type of funds they hold through the conversion between funds, so as to disperse and avoid the investment risks brought by market fluctuations.

Disadvantages of fund conversion:

1, strict conversion requirements. Only when the fund to be transferred and the new fund to be purchased by investors are the products of a fund company, the two fund registrants are the same, the fund products are sold in the same fund consignment agency, and the charging modes of the two funds are the same can the funds be converted to each other.

2. There are few funds to choose from. Funds are traded normally, and you can choose any fund sold in the market at will, and choose a lot; However, there are many restrictions on the conversion of funds, so the scope of investors' choice of fund types has narrowed.

3. The fund price is unknown at the time of transfer. When the fund is transferred out, the price is uncertain and may exceed the expected amount of investors. If the actual transfer-out amount is greater than the amount before transfer-out, that is, the actual net value of the converted fund is higher than the expected net value, the system will return the difference to the investor after the fund conversion is confirmed.